Smurfit WestRock plc (SW)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Jun 30, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 4,865,675 | 5,223,335 | 4,615,335 | 5,315,945 | 6,743,580 | 7,130,680 | 8,290,900 | 7,928,220 | 7,569,050 | 6,934,260 |
| Revenue (ttm) | US$ in thousands | 23,877,500 | 21,680,480 | 16,924,480 | 17,290,730 | 21,079,510 | 22,711,780 | 26,096,490 | 25,427,580 | 24,019,550 | 21,674,780 |
| Gross profit margin | 20.38% | 24.09% | 27.27% | 30.74% | 31.99% | 31.40% | 31.77% | 31.18% | 31.51% | 31.99% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $4,865,675K ÷ $23,877,500K
= 20.38%
The gross profit margin of Smurfit WestRock plc has shown a gradual decline over the reviewed periods, starting from 31.99% as of December 31, 2021, and gradually decreasing to 20.38% by December 31, 2024. This downward trend indicates a decrease in the efficiency of the company's production and pricing strategies, as the company is retaining a lower percentage of revenue as gross profit.
The decline in gross profit margin could be attributed to various factors, such as increased production costs, pricing pressure, or changes in sales mix. It is essential for the company to closely monitor and analyze the underlying reasons for this trend to implement corrective measures promptly.
A declining gross profit margin can impact the overall profitability and financial health of the company, as it reflects the proportion of revenue that the company retains after accounting for the cost of goods sold. Investors and stakeholders may view this trend as a red flag and may seek further explanations from the company's management regarding the actions being taken to reverse this negative trajectory and improve profitability.
Peer comparison
Dec 31, 2024